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Posts Tagged ‘Internet TV’

TV-online video migration continues apace Wednesday, November 19th, 2008

The evidence is gathering that online video is cannibalizing television consumption and revenue.

An IBM study that polled 2,800 people in six countries has revealed that more than three-quarters of people have viewed video online and nearly half do it regularly. Of those who have watched online video, 15% say that as a result they watch “slightly less” TV, while 36% said they watch “significantly less” TV.

Paying homage to the history of commercial television, 70% of online video viewers prefer the ad-supported model over consumer-paid models. They specify, though, that they prefer watching a commercial before or after an uninterrupted online video, and they don’t like product placement.

Almost 60% of the respondents said they were willing to provide to advertisers some personal information about themselves in exchange for something of value, such as access to high-quality music videos, store discounts or airline frequent-flyer points.

“The industry must find appealing ways to monetize new content sources or risk a similar fate as that of the music industry where value shifted away from core players,” said Saul Berman, the study’s co-author.

Meanwhile, eMarketer reports that while TV revenue growth is slowing, online video revenue growth is soaring - though the overall numbers suggest there is a fair amount of leakage in overall spend.

eMarketer estimates there will be $284.8 billion in total US ad spending in 2008, and TV still garners 25% of those dollars. But in 2009 US TV advertising spending will decline 4.2% to $66.9 billion.

“This precipitous drop reflects not only the poor economic conditions, but fundamental changes in the way television advertising is being bought and sold,” says Carol Krol, eMarketer senior analyst. “Although there will be inevitable stumbling as they find their footing, the broadcast networks are making bold and interesting choices in an effort to follow consumers online,” says Ms. Krol. “They are collaborating with competitors, hooking up with online partners and forging alliances that were unheard of just a few years ago.”

Online video ad spending as a percent of TV ad spending is expected to nearly double over the next two years, however it will still only reach 1.7% in 2010 - and still less than 3.5% of overall online advertising spend.

Krol points out that there is still “no clear winning online business model for broadcasters,” and that online advertising revenue growth is less than offline media decline. Which raises the question: where is that money going?


Online shows, short-form video for Fairfax Wednesday, September 17th, 2008

From the B and T newsletter:
“Fairfax Media is diversifying its advertising opportunities through the development of new types of short-form video content on its websites, and has commissioned several new online shows.

“The new internet TV shows include several ‘infotainment’ broadcasts and branded content shows including Land Rover’s Best Breaks, a 12-part series looking at short breaks from Sydney and Melbourne.

“An increased demand, particularly around lunch time, from viewers has led to a new ‘primetime’ audience for advertisers to tap into, said Pippa Leary, managing director of media for Fairfax Digital.

“’Short-form videos offer more freedom to viewers- because it’s on demand and easy to share with others,’ she said.

“….Fairfax is closely monitoring what is happening in the US and the UK in the branded content area, said Leary. ‘As audiences get more sophisticated the advertisers have to get more sophisticated, too.’

She said one of the major trends Fairfax have noticed is advertising agencies creating both TV ads and online ads when doing a shoot: ‘The ads for online are a lot shorter and also incorporate more interactivity.’

“The media company’s latest show was a comedy sketch called 51st State by performer and writer Dan Ilic, which covered the Democratic Convention in the US. ‘Because it was topical at the time, the series blurred the lines between news and entertainment. It appeals to a broad audience and also advertisers trying to reach a diverse audience,’ said Leary.”